Compulsory Income Management in the Northern Territory – evaluating its impact

Australia has been experimenting with constraining the ways in which welfare recipients can spend their income support payments, limiting their ability to access cash and purchase some products. The policy objectives include to reduce spending on alcohol, gambling, pornography and tobacco in favour of meeting ‘basic’ family needs, especially for children, to limit the scope for financial harassment, encourage pro‐social behaviours, and build financial capabilities. In the logic of the programs these outcomes are expected to be manifest at the individual, family and community levels. The policy has primarily impacted on Indigenous Australians as a result of its geographic targeting, although a recent report has recommended a more stringent version of the program be introduced universally to all welfare recipients other than the aged. The largest of these experiments is ‘New Income Management’ in the Northern Territory, which has had more than 35,000 participants since its introduction in 2010. This article reports on the key findings of the major independent evaluation of New Income Management commissioned by the Australian Government.     

Reverse Mortgage as an Income Stabilizer for the Elderly in Korea

This paper examines the features of reverse mortgages in Korea, comparing beneficiary and non‐beneficiary groups in relation to income security for elderly homeowners without sufficient income. In addition, this study estimates how much poverty rates would decrease if all elderly single and couple households joined the program. A reverse mortgage was implemented in 2007 in Korea as a government guaranteed scheme for elderly homeowners. Notwithstanding the contribution of the reverse mortgage program, many elderly homeowners do not utilize the system as a useful means to earn additional income. Given the high elderly poverty rate and incomplete social safety net in Korea, the program should be extended to supplement the insufficient income of elderly “house‐rich but cash‐poor” households. The paper first reviews reverse mortgage policy details. We then investigate key characteristics of the beneficiaries and compare beneficiaries and non‐beneficiaries based on nationwide survey data. Finally, we estimate the potential income‐raising effects of the program and draw implications of the income security policy in Korea and reconfiguration of the welfare state in a broader context.     

An analysis on basic income: Evidence using data from experimental projects throughout the world

Basic income was a hot issue in the recent Korean presidential election. Its pros and cons were used to scramble for the electorate's votes. However, their arguments largely relied on political rhetoric and lacked scientific facts. The problem is that politics without the backing of science is not only prone to a misguided conviction but also going to deal a blow to the future development of basic income. This study aims to narrow the gap between rhetoric and facts through evidence-based research on basic income. By employing methods of fact-finding and effect evaluation, we analyze using four aspects of assessment, namely, general information about basic income experiments; details on the experiments; development of the experiments; and the effect of the experiments. Basic income-related data are drawn from the World Bank and the Basic Income Laboratory at Stanford University. Significant results of the review are that some positive effects were identified at the micro level but any meaningful macro-level impact was impossible to confirm. To sum up, the outcomes are so erratic that it is difficult to detect any clear pattern in policy impacts. To approach basic income more scientifically, further research is urgently needed.     

The Dynamics of Welfare Policy‐Making in South Korea: Social Movements as Policy Entrepreneurs*

This paper analyzes the role of social movements in the creation and evolution of a welfare state in South Korea. We begin with a theoretical overview of the existing works on policy change, highlighting concepts such as ideas, policy paradigms, and windows of opportunity. We then examine state institutions, hegemonic policy paradigms, and the specific dynamics of welfare policy‐making during South Korea’s authoritarian period (1961–1987). Next, characterizing the democratic transition in 1987 and the economic crisis of 1997–1998 as “windows of opportunity,” we probe how social movements emerged as “policy entrepreneurs” and played crucial roles in building welfare institutions and promoting welfare policies. In particular, we focus on the role of social movements in legislating the National Basic Livelihood Security Act in 1999 and consolidating fragmented health insurance systems in 2000. We conclude that social movements in democratized South Korea have assumed the role of policy entrepreneurs, filling the vacuum left by the central government and elite bureaucrats in the field of social welfare policy‐making.     

Intergenerational income mobility and inequality in South Korea

Using data from the Korean Labor and Income Panel Study (KLIPS), recent trends in intergenerational income mobility were explored, examining the relationship between income mobility and income inequality in South Korea. The study found that the intergenerational elasticity of income is about 0.2 and there is no clear‐cut trend in intergenerational income mobility. In addition, this study showed that there is no systematic relation between rising income inequality and intergenerational income mobility in contemporary Korea. Overall, the results indicate that intergenerational income mobility is irresponsive to the income inequality the respondents experienced growing up. It is assumed that education and welfare transfer programs might offset the consequences of income inequality by leading to upward mobility for children from low‐income households.     

National Support Income Scheme For Australia: An Economic and Statistical Study

This study attempts to demonstrate the financial viability and economic soundness of adopting a National Support Income Scheme for Australia. The concept, designed to create an environment in which jobs are available for all, relies on three basic propositions including a reduction in wages and other incomes in exchange for receipt of the support income. The demonstration, based on the latest published statistics, indicates that adopting this scheme for Australia can be financially and economically justified.     

The Clash between Social Policy and Traditional Values: Unmet Welfare Needs Sustained by the Culture of Familism in South Korea

Drawing from a wider study of the ideas of poverty and inequality in South Korea, this paper reports on the lived experiences of disadvantaged South Koreans and their relationship to the National Basic Livelihood Security System (NBLSS), a flagship social assistance program aimed at addressing poverty and inequality. Utilizing a cultural approach to understanding and analysing policy responses to poverty, the impact of familism in the application of the NBLSS safety net is examined. Research data is presented through the testimonies, obtained through qualitative research interviews, of disadvantaged research participants and those who work with them, as well as policy‐makers' perspectives, revealing key flaws in the current NBLSS policy objectives. It is clearly evident that, by clinging to outdated Confucian conceptualizations of familial piety as a justification for highly selectivist access to what is no more than a subsistence level of financial support for poor people, the proposition of a poverty safety net is compromised and is widely missing its aim of reducing poverty and inequality in contemporary South Korea.     

Blind‐sided by Basics: three perspectives on income management in an Aboriginal community in the Northern Territory

Income management was introduced into the Northern Territory in 2007. Despite much rhetoric around evidence based policy making and constant reviewing of income management, there has been little grounded research about Aboriginal responses at the community level to this new institution. In this article I report on the operations of income management from a longer term perspective, working with Kuninjku people and retail outlets in the Maningrida region in Arnhem Land. My argument is that from a local perspective income management is just one of a suite of new measures that have been introduced to alter the norms and values of people to correlate more closely with Australian mainstream norms. This view is based on participant observation rather than direct questioning. Income management is a low priority issue for the Kuninjku people in the current policy maelstrom that seeks to shift policy from ‘self determination’ back to a form of assimilation now heavily influenced by a neoliberal ideological agenda. Local responses vary from indifferent acceptance to resistance. I ponder the crucial policy question, how can we allow substantial financial resources to be squandered in unhelpful income management when they could be deployed productively to enhance wellbeing for Indigenous Australians?     

The 2015 welfare reform of the National Basic Livelihood Security System in South Korea: Effects on economic outcomes

In July 2015, South Korea’s National Basic Livelihood Security System (NBLSS) was reformed for the purposes of eliminating welfare blind spots and reducing poverty. The reform is expected to affect the recipients’ economic behaviours and choices. In this study, we used changes in benefits and eligibility for the NBLSS under the customised benefit system to identify the effects of the change in the NBLSS on a proposed set of economic outcomes – income, labour supply, consumption, savings, poverty reduction. To estimate the effects, we used data from the 10th–12th waves of the Korea Welfare Panel Study and employed a difference‐in‐differences framework integrated with the propensity scores. We found that the NBLSS helps the poor to reduce financial and material hardships through income and consumption increments, but that it does not provide disincentives to the recipients from participating in the labour market or from saving.     

Does family still matter? Public and private transfers in emerging welfare state systems in a comparative perspective

Kim JW, Choi YJ. Does family still matter? Public and private transfers in emerging welfare state systems in a comparative perspective Int J Soc Welfare 2011: 20: 353–366 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and the International Journal of Social Welfare. While the role of the family has been a distinctive feature of East Asian welfare systems, rapid social policy development and reforms in South Korea and Taiwan over the last two decades have led to an increase in public welfare. Yet, despite a growing number of studies, little is known about the role of family support – private transfers – and public programmes in the performance of state welfare. This article reports on a comparative analysis of the role of public and private transfers aimed at poverty and inequality reduction in 12 Western and two East Asian states employing the Luxemburg Income Study data set. Results indicate that, in contrast to the West, private transfers that rest primarily on family support remain more important than public transfers in reducing income inequality and poverty in South Korea and Taiwan.     

韩国海洋战略实施及其对我国海洋权益的影响

韩国海洋战略是一项综合性、系统性的战略规划,其战略举措的提出与实施旨在推进海洋发展战略与安全战略,实现世界一流海洋强国的战略目标。作为中国的海上邻国,韩国海洋战略实施会对中国产生诸多影响。客观认识这些影响对制定我国海洋战略及其政策有着极为关键的作用,并有助于倡导海洋合作、建设和谐海洋的目标。     

The role of identity in South Korea’s policies towards Japan

This paper asks why South Korea’s relations with Japan is so vulnerable to disputes over history in the post-Cold War period. It argues that South Korea’s identities vis-à-vis Japan and North Korea respectively conflict with each other and leads to inconsistent policy towards Japan that hovers between cooperation and discord. By analyzing South Korea’s relations with Japan as well as its policies and behavior in the post-Cold War period, this paper aims to show how identity factor affects a state’s foreign policy and behavior towards other states. In doing so, it questions the rationality assumption of state behavior in IR and offers alternative explanations on how to better understand “emotional” foreign policies.     

‘Let the King Save the Poor’: The Discursive Mechanism Underlying the Under‐exercise of Social Rights in South Korea

This study was prompted by discrepancies observed between the quantitative expansion and the qualitative stalemate in social policy in South Korea. Despite a revamped social security system, changes in South Korean social policies have not led to significant coverage expansion or improved income and poverty distribution. The frequent appearance of the Korean proverb that ‘even the King cannot save the poor’ in policy participants' narratives reflects a lack of confidence in the Government's ability to address persistent social disadvantages and the prevalence of a fatalistic policy perspective. This proverb has a conceptual affinity with an individualistic approach and has effectively functioned as a governance tool to oppress the progress of welfare rights. This research shows that an expenditure‐based model could lead to actual policy situations being misrepresented. Further, institutional policy arrangements may not be a sufficient condition for improving policy performance. It is suggested that a rights‐based approach should be adopted for both theorization of the transition of the welfare regimes and discursive practice for a policy paradigm change.     

Effectiveness of Social Welfare Programmes in East Asia: A Case Study of Taiwan

Using the 2008 Family Income and Expenditure Survey, this study examined the effectiveness of social welfare programmes in Taiwan. The empirical evidence shows that most types of social welfare spending were limited in 2008. However, the social welfare programmes that were in place substantially reduced income inequality in Taiwan. Using the Organisation for Economic Co‐operation and Development (OECD) poverty threshold, the results reveal that 14 per cent of the sample's families were poor in terms of market income, but this figure decreased to 7 per cent after government intervention. Income inequality in Taiwan was similar to that of other East Asian countries such as Japan and South Korea, but Taiwan spent much less money on social welfare programmes than OECD countries, and therefore Taiwan's reduction of poverty was much lower as well.     

Poverty reduction effectiveness of public income transfers in South Korea in the wake of the global financial crises: a panel-data analysis

By using a longitudinal data-set from the Korean Labor and Income Panel Study, the present study examines the poverty reduction effectiveness of public income transfers in South Korea from 1998 to 2011. Findings indicate that the average poverty rate fell from over 20% between 1998 and 2000, to 14% from 2001 to 2006, rose to 17% by 2008, and declined to 15% in 2011. However, the poverty-rate reduction effectiveness continuously increased from 5.5% in 1998 to 32.8% in 2011. The poverty-gap reduction effectiveness also improved sixfold from 6.8 to 39.6% over the same period.     

Welfare states and welfare outcomes in the 1980s

Welfare state typologies can be a useful means of grouping together countries with similar policy regimes. Whether the policy outcomes of these regimes are similar is an empirical question which could not be adequately addressed until the advent of the Luxembourg Income Study (LIS) project. Using evidence from the LIS data on income inequality and poverty, this paper examines the extent to which regime types and outcomes coincide. The findings suggest that while there is a broad coincidence, these typological frameworks are beset by boundary problems which result in the misclassification of some countries. In addition, as individual nations change policy direction, the task of sorting ideological postures from substantive change decreases the reliability of such typologies.     

How does policy advice of the international monetary fund differ along the income of advised countries?

ABSTRACT

The policy advice literature has paid little attention to the role of international organizations in policy advisory systems. This article offers a systematic analysis of policy advice provided by the International Monetary Fund (IMF) in the framework of the IMF’s regular Article IV consultations. The article argues that the content of IMF advice differs according to the income of the advised countries. Content analyses of the Article IV consultation reports of 18 countries show correlations between the gross national income (GNI) of the advised countries and the function of advice in the policy cycle, the specificity of advice, the recommended policy instruments and the targeted policy issues. Results show that the IMF rather points to policy problems, advices on policy goals and focuses on improving implementation when advising lower income countries. When advising higher income countries, the IMF’s advice focuses on means and specific policy tools.     

Importance of pension income of elderly households in Korea and related factors

Utilising the 2014 Household Income and Expenditure Survey of Korea, this study examined the importance of pension incomes for elderly-headed households in Korea and the influence of other income sources and socio-demographic factors on pension income. It was found that 64.8% of those surveyed received pension income, which accounted for 12.4% of total income on average. As age increased, the importance of pension income increased. Pension income receipt and amount were affected by household size, gender, age, educational level and home ownership. Policymakers could use the factors identified in this research to develop effective and selective pension policies.     

The normalisation of income management in Australia: analysis of the parliamentary debates of 2007 and 2009–10

Initially introduced as part of Australia's Northern Territory Intervention in 2007, Income Management (IM) explicitly targeted inhabitants of remote NT Indigenous communities. IM is a form of welfare conditionality that involves compulsorily ‘quarantining’ at least half of individuals' social security income. It has been heavily criticised for being racist, discriminatory, and a violation of individual rights. The introduction of New Income Management (NIM) in 2010 extended IM beyond Indigenous communities and introduced a new set of eligibility criteria that shifted the focus of IM from Indigenous people to working age recipients of social security income. This in depth study of the early parliamentary debates on the compulsory IM programs traces the patterns of political discourse that led to IM coming to be seen by many policy makers as a normal and legitimate technique within Australian social policy. Situating the IM programs within neoliberal concerns about welfare dependency and active citizenship, this article argues that the introduction of NIM heralded a shift from a conception of IM as part of a focused social experiment targeted at remote Indigenous communities to a potentially mainstream social policy option.     

Rising earnings inequality and the role of education revisited

Numerous studies have found a strong positive association between the level of education and economic returns (i.e., earnings). This relationship, however, has received less examination in the context of institutional or temporal variability. Drawing on the experience of South Korea in the decade after the 1997 Asian financial crisis, this study examines the role of education in rising earnings inequality under a radically changing institutional environment. Based on data from the Korean Labor Income Panel Study and Theil index decomposition, this study finds that despite the robust association between education and earnings inequality in post-crisis South Korea, a substantial amount of the rise in overall inequality is primarily attributable to rapid increase in within-education-group inequality rather than between-group inequality. This demands renewed attention to the role of education in earnings inequality to fully account for the changing dynamics of inequality in the twenty first century.